While the above story describes a real problem in SF, it
ignores two much more significant contributors to the
issue that interlock with the effects of tech money.
First, SF residents are extremely anti-development and
NIMBYism runs rampant. It is ridiculously costly, time
consuming, and difficult to renovate or build anything in
SF. Add in a corrupt city planning process that was
deliberately designed to allow just one person to hold up
any project, large or small, and the result is a extremely
restricted supply of both residential and commercial real
estate.
Second, the most influential opinion-leaders and elected
officials are virulently anti-business. This has led to an
oppressive level of mandates, fees, permits, taxes,
licenses, and neighborhood activist oversight to be
imposed on all businesses, from the local mom-and-pop dry
cleaner to the few remaining large companies based in SF.
So, the combination of the influx of highly paid (or
already affluent) residents, an essentially fixed and
unchanging real estate stock, and a deeply ingrained
hatred of private economic activity by both politicians
and active voters result in places like the Grove being
penalized for their success. The problem cannot be reduced
to a simplistic case of rich tech workers throwing down on
starving artists.
Source:http://bits.blogs.nytimes.com/2013/04/21/san-francisco-hango...